Adding in yet another tax is not the way to reform either the Tax situation or Housing Prices.

Adding in yet another tax is not the way to reform either the Tax situation or Housing Prices.

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  • Martin Stenersen
    commented 2017-03-29 15:02:46 +1300
    Adjusting the income scale (not tax %‘s) by which people are taxed. Median income levels shift as inflation rises or falls. However, median incomes have not, in recent times, moved sufficiently to keep up with cost of living. Therefore you have people receiving what is classified now as a higher level income (and taxed appropriately) when it should be considered as merely a middle income bracket figure. The income brackets are out of touch with current cost of living expenses so by adjusting the income brackets for tax %’s you re-balance what people can afford. Any loss to the government tax collecting will likely be made up (plus some) by the business taxes collected from investment property owners.
  • Martin Stenersen
    commented 2017-03-29 14:59:13 +1300
    To alleviate housing price increases to enable first home buyers to actually get somewhere you need to directly address the “investment property” market. Anyone can go out and acquire a second property, charge, effectively, what they want and make a ton of cash in the process. Why should people not need to establish a business in order to do this? They are effectively running an accomodation business so anyone who purchases a house that will not be “Owner Occupied” should have to purchase it under the auspices of a business. They will therefore be responsible for business tax and must meet the criteria for running a business in New Zealand. From this you will generate more tax with you can implement part two of the Tax reforms, which is….
  • Martin Stenersen
    published this page in How would you make New Zealand Fair Again? 2017-03-29 14:50:26 +1300